Is Greenlight a checking or savings account?
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Key takeaways:
Greenlight isn’t a checking or savings account. It’s a debit card for kids and a money app built for families.
It combines key features of both account types: spending with a debit card, saving with a savings reward, and teaching kids how to manage money.
Parents have oversight into how the account is used. They can even add parent-paid interest.
What is Greenlight, exactly? It’s not a checking account. And, it’s not a savings account either. Instead, Greenlight is a prepaid debit card for kids paired with a money app built for families. Kids can use it to spend, save, and learn, all with parental safety controls. Parents fund their kids’ Greenlight accounts, and from there, kids get a debit card, customizable saving tools, and real-time visibility into their balance.
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How Greenlight can work like a savings account
Greenlight doesn’t offer a standard savings account, but it gives kids the tools they need to start saving with purpose:
Savings goals. Kids can pick something big they want to work toward and watch their progress add up in the app.
Separate categories. Each Greenlight card account has built-in spaces for saving, spending, and giving, so it’s easy to keep track of where their money’s going.
Rewards. On certain Greenlight plans, kids can earn up to 6% on their savings annually*.
Parent-paid interest. You can set your own interest rate to teach the power of compound interest and reward consistent saving.
Financial learning. Greenlight makes saving feel like part of daily life with its in-app game, LevelUp™.
So, it’s not the same as putting money into a bank account and forgetting about it. Greenlight encourages active saving, with visible progress and real incentives.
How Greenlight can work like a checking account
On the flip side, Greenlight functions a lot like a beginner-friendly checking account:
Spending with a debit card. Kids can use their Greenlight card anywhere Mastercard is accepted, both in-store and online.
Direct deposit. Teens can set up direct deposit for their paychecks or side gig income.
Real-time notifications. Parents get alerts every time the debit card is used.
Spending limits and controls. You can cap how much your child spends, block certain stores, or approve purchases as they happen.
No overdraft fees. Since the card is prepaid (funded by parents or direct deposit), kids can only spend what’s already on their Greenlight card. There’s no risk of overdrafting their spend bucket.
Greenlight gives kids the freedom to make their own decisions, with the safety net of built-in parental controls.
Both you and your kids download the Greenlight app — with tailored experiences. They check off chores, you automate allowance. They spend wisely, you set flexible controls. They build healthy financial habits, and you cheer them on.
So, is Greenlight right for your family?
Greenlight isn’t a checking account. It’s not a savings account either. But for a lot of families, it’s better than both.
You get the tools to help your kids spend wisely, save intentionally, and build habits that stick. If you’re looking for something that teaches real-life money skills (not just stores money), Greenlight is designed for exactly that.
It may not be ideal if you’re looking for a full-service bank with paper checks or long-term savings accounts. But if your goal is to raise financially confident kids, Greenlight meets them where they are, and grows with them.
FAQs
Can my child write checks or pay bills directly from their Greenlight card?
Greenlight doesn’t offer check-writing, but your child can use their debit card to pay for subscriptions, make online purchases, or even set up recurring payments (with your oversight).
Are Greenlight savings reward rates more competitive than a bank?
In many cases, yes. Greenlight’s highest-tier plan offers up to 6% on savings*, which is far more than most kids’ savings accounts at brick-and-mortar banks.
Does Greenlight count as a bank account?
No, Greenlight’s banking services are provided by Community Federal Savings Bank**. Greenlight is a financial technology company that offers debit card for kids and money management tools through its app.
By: Alyssa Andreadis
Alyssa Andreadis is a writer with more than 25 years of marketing experience and is passionate about helping families feel confident with money. She’s written hundreds of articles on personal finance, parenting, and financial literacy. A single mom raising three money-smart teens, Alyssa brings a real-life perspective to her work. She lives in Pennsylvania and always has a knitting project in progress.
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